Sept. 3 (Bloomberg) -- European stocks rose for a second
day and copper advanced on speculation central banks will take
more steps to boost growth as reports signaled the economic
slowdown is deepening. Spain’s bonds gained and emerging-market
shares climbed the most in two weeks.

Euro-area manufacturing contracted more than initially
estimated in August and China’s factory output unexpectedly
shrank for the first time in nine months, according to reports
from London-based Markit Economics today and a government survey
in Beijing Sept. 1. Federal Reserve Chairman Ben S. Bernanke
said Aug. 31 that he wouldn’t rule out more stimulus. European
Central Bank President Mario Draghi may unveil details of his
bond-purchase program after a policy meeting Sept. 6.

“The door for further quantitative easing is clearly not
shut and is very much dependent on what the near-term data tells
us about the labor market trend,” Jim Reid, a strategist at
Deutsche Bank AG in London, said in a research note. “Draghi’s
press conference will likely be the highlight of the week with
markets hoping for further guidance around the ECB’s bond
purchasing program.”

Stocks Rebound

The Stoxx 600 rebounded from two weeks of losses, the first
back-to-back declines since May. BHP Billiton Ltd. and Rio Tinto
Group led a rally in mining companies. Rhoen-Klinikum AG plunged
21 percent as Fresenius SE decided against reviving its bid for
the German hospital operator.

“Bernanke did say if more is needed, the Fed stands by to
do more, which is good for the economy, it’s good for markets,”
Markus Rosgen, chief Asian strategist at Citigroup Inc., said in
a Bloomberg Television interview. “In terms of China, there is
certainly more room to ease.”

China’s Purchasing Managers Index fell to 49.2 in August
from 50.1 in July, the National Bureau of Statistics and China
Federation of Logistics and Purchasing said.

Emerging Markets

Emerging-market stocks gained for a second day. The
Shanghai Composite Index added 0.6 percent, rebounding from the
lowest close last week since February 2009. Russia’s Micex Index
rose 1.2 percent and benchmark gauges in Hungary, Indonesia and
South Korea advanced at least 0.4 percent.

Consumer-goods maker Hypermarcas SA rose the most in two
weeks, leading gains by companies that sell in the local market
while Marfrig Alimentos SA, Brazil’s second-biggest food
company, sank 3.6 percent.

The zloty was the second-worst performer among 25 emerging-market currencies, weakening 0.5 percent versus the euro, after
a report showed contraction in Polish manufacturing deepened in
August more than estimated, adding to slowdown concern.

Metals Gain

Copper rose to $7,679 a metric ton and nickel climbed to
$16,220 a ton. China is the world’s largest consumer of both
metals. Natural gas declined 0.5 percent.

The yield on Italy’s 10-year bond fell eight basis points
to 5.77 percent. The yield on German 10-year government bonds
rose 4 basis points to 1.38 percent and yields on similar-maturity U.K. gilts were at 1.65 percent.

The Swedish krona depreciated 1.1 percent to 8.4300 per
euro, the weakest level since July 27, after an unexpected drop
in manufacturing. Australia’s dollar dropped as low as $1.0240,
the least since July 25, after a report showed retail sales
declined.